I remember having a conversation with [Steve] and I was asking why it could have been perceived that in his critique of a piece of work he was a little harsh. We’d been working on this [project] and we’d put our heart and soul into this, and I was saying, ‘Couldn’t we … moderate the things we said?’

And he said, ‘Why?’ and I said, ‘ Because I care about the team.’ And he said this brutally, brilliantly insightful thing, which was, ’No Jony, you’re just really vain.’ He said, ‘You just want people to like you, and I’m surprised at you because I thought you really held the work up as the most important, not how you believed you were perceived by other people.’

I was terribly cross, because I knew he was right.”

- End of the first paragraph, Jony Ive says to be nicer. - Next paragraph Steve shuts him down.

edited for formatting.

Looks like Jony caved, because Steve's rude remark was "brilliant".

I don't see that as standing up to Steve at all - just the opposite. Jony justifies Steve's rude behavior.